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Gamma Communications (LSE:GAMA) Cyclically Adjusted Price-to-FCF : 36.80 (As of Jun. 06, 2024)


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What is Gamma Communications Cyclically Adjusted Price-to-FCF?

As of today (2024-06-06), Gamma Communications's current share price is £14.72. Gamma Communications's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 was £0.40. Gamma Communications's Cyclically Adjusted Price-to-FCF for today is 36.80.

The historical rank and industry rank for Gamma Communications's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

LSE:GAMA' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 27   Med: 45.71   Max: 137.35
Current: 36.54

During the past 13 years, Gamma Communications's highest Cyclically Adjusted Price-to-FCF was 137.35. The lowest was 27.00. And the median was 45.71.

LSE:GAMA's Cyclically Adjusted Price-to-FCF is ranked worse than
83.16% of 190 companies
in the Telecommunication Services industry
Industry Median: 13.005 vs LSE:GAMA: 36.54

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Gamma Communications's adjusted free cash flow per share data of for the fiscal year that ended in Dec23 was £0.872. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is £0.40 for the trailing ten years ended in Dec23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Gamma Communications Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Gamma Communications's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Gamma Communications Cyclically Adjusted Price-to-FCF Chart

Gamma Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 94.89 69.95 34.50 28.03

Gamma Communications Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.95 - 34.50 - 28.03

Competitive Comparison of Gamma Communications's Cyclically Adjusted Price-to-FCF

For the Telecom Services subindustry, Gamma Communications's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Gamma Communications's Cyclically Adjusted Price-to-FCF Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Gamma Communications's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Gamma Communications's Cyclically Adjusted Price-to-FCF falls into.



Gamma Communications Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Gamma Communications's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=14.72/0.4
=36.80

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Gamma Communications's Cyclically Adjusted FCF per Share for the fiscal year that ended in Dec23 is calculated as:

For example, Gamma Communications's adjusted Free Cash Flow per Share data for the fiscal year that ended in Dec23 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec23 (Change)*Current CPI (Dec23)
=0.872/130.5000*130.5000
=0.872

Current CPI (Dec23) = 130.5000.

Gamma Communications Annual Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201412 0.046 99.900 0.060
201512 0.178 100.400 0.231
201612 0.074 102.200 0.094
201712 0.111 105.000 0.138
201812 0.249 107.100 0.303
201912 0.357 108.500 0.429
202012 0.424 109.400 0.506
202112 0.615 114.700 0.700
202212 0.656 125.300 0.683
202312 0.872 130.500 0.872

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Gamma Communications  (LSE:GAMA) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Gamma Communications Cyclically Adjusted Price-to-FCF Related Terms

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Gamma Communications (LSE:GAMA) Business Description

Traded in Other Exchanges
Address
Kings Road West, Kings House, Newbury, Berkshire, GBR, RG14 5BY
Gamma Communications PLC is a supplier of Unified Communications as a Service (UCaaS) in the United Kingdom and Dutch markets, supplying communication solutions directly and via its network of trusted channel partners. The company's product portfolio includes Unified Communications, SIP Trunking, Call Management, Mobile, and Connectivity. Its segments consist of UK Indirect, which sells products to channel partners; UK Direct which sells products to end-users in the SME, enterprise, and public sectors together with an associated service wrap; and European segment consists of sales made in Europe; and Central functions.

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